Crude Oil Forecast: Oil Continued to Find Buyers on Dips – 07 March 2023
Any short-term dips should be viewed as buying opportunities until we reach the top of the rectangle.
Initially, the West Texas Intermediate Crude Oil market retreated a little during Monday’s trading session but eventually found support near the 50-Day EMA, indicating a resurgence of activity.It seems apparent that the market is striving to reach the top of its range, but the question now is whether the market can surpass this level or if there will be enough selling pressure to keep it within the same consolidation.
What catches my attention in this region is that the market appears to be maintaining its sideways movement, but it’s also worth noting that we’re gradually experiencing higher lows. If this trend continues, it could signal that buyers are about to drive this market towards an upward trend. Nonetheless, caution is advised, and it may not be the best idea to risk too much in this market, at least for now. A daily close above the 200-Day EMA would be an extremely positive sign.
At the start of Monday, Brett markets experienced a similar pullback to the 50-Day EMA but quickly rebounded, indicating signs of revival.The 200-Day EMA is situated just above the $89 level, which marks the peak of our overall consolidation area.Breaking above this level could open the door to a potential increase to the $95 level.
Any short-term dips should be viewed as buying opportunities until we reach the top of the rectangle. At that point, we will wait to see if an exhaustion candle forms, which would be a signal to short the market, or if we finally break out.
The market’s lows have been gradually increasing, which could be a sign that a breakthrough is on the horizon. It remains to be seen whether this will happen now or later, but many experts believe that crude oil prices will rise throughout the summer. The idea that higher oil prices are coming is backed up by China reopening, and of course the “driving season” in the United States and Europe. I believe this more likely than not is going to be the case, but at this point, as far as buying is concerned it comes down to timing. I will be adding to my position as it works out my favor, but right now I think we’ve got to wonder whether or not that ceiling above holds.
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